2024-02-12 09:38:49
The price of European natural gas fell to its lowest level in over six months at the beginning of the week. On Monday, the landmark futures contract TTF for delivery in one month on the Amsterdam stock exchange slipped below 26 euros per megawatt hour (MWh). In the morning the contract temporarily cost 25.82 euros, making it cheaper than it has been since last July.
The start of the war in the Middle East caused the price to temporarily rise above 50 euros last October, but then a trend reversal began in November. Since the beginning of the year, the price of the raw material has fallen by around 20 percent. On the market, the price decline is explained, among other things, by the rather weak economy in the European Union. This is slowing down demand for gas, including in Germany.
The recent attacks by Houthi rebels on important shipping routes in the Red Sea have not been able to give the gas price a major boost. Raw materials experts assume that this will not affect supplies in Europe.
The current price level is also well below the highs reached during the Russian war once morest Ukraine. Over the course of 2022, more than 300 euros per megawatt hour were temporarily due following Russia severely cut back on its gas deliveries to Europe.
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